An annual premium whole life insurance on (50) pays a benefit of 20,000 for accidental death...

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An annual premium whole life insurance on (50) pays a benefit of 20,000 for accidental death and 10,000 for death from non-accidental causes. You are given: (i) Benefits are paid at the end of the year of death. (ii) Premiums are 200 per year, payable at the beginning of each year. (iii) Renewal expenses are 5% of premium. (iv) The reserve is the net premium reserve with i = 0.04. (v) In the reserve basis, Aso = 0.205, A59 = 0.250, and A60 = 0.260. (vi) In the profit test basis, i = 0.06, 9p50 = 0.96, 959 = 0.01. (vii) The probability of accidental death in each year, given survival to the beginning of the year, is 0.001. Calculate II10, the tenth year profit per policy issued. An annual premium whole life insurance on (50) pays a benefit of 20,000 for accidental death and 10,000 for death from non-accidental causes. You are given: (i) Benefits are paid at the end of the year of death. (ii) Premiums are 200 per year, payable at the beginning of each year. (iii) Renewal expenses are 5% of premium. (iv) The reserve is the net premium reserve with i = 0.04. (v) In the reserve basis, Aso = 0.205, A59 = 0.250, and A60 = 0.260. (vi) In the profit test basis, i = 0.06, 9p50 = 0.96, 959 = 0.01. (vii) The probability of accidental death in each year, given survival to the beginning of the year, is 0.001. Calculate II10, the tenth year profit per policy issued.

Answer rating: 100% (QA)

To calculate the tenth year profit per policy issued II10 we need to consider the premiums benefits ... View the full answer